Foreign Economic Aid to Venezuela

With Venezuela’s currency value dropping at recent rapid rate local corporations are seeking foreign loans. Company’s like PDVSA are currently in quick negotiations with foreign businesses in order to ease their finances and have a productive year. PDVSA currently hopes to secure a six billion dollar loan from China and a two billion dollar loan from U.S. energy Chevron, via bonds and credit. With the absence of Chavez acquiring the loans has been noticeably difficult without the undisputed decisions of Venezuela’s leader in these country to country negotiations.

In class we discussed Latin American countries were dependent on economic aid from foreign countries. Mexico, especially in the nineteenth century, benefited greatly from British investments improving Mexican trade and business growth.

One Response to "Foreign Economic Aid to Venezuela"

I also read this article, and found that it related heavily to what we are going over in class. Venezuela, due to its strained finances, have sought and are seeking various deals with the nations of China and the U.S. energy giant Chevron to grant the country loans to aid their deteriorating economy. In the article, it stated that over the years Venezuela had borrowed over $36 billion and repaid them with oil. Currently seeking a $6 billion loan from China, Venezuela ended up rejecting a clause (no more detail given) introduced by the Chinese. Presumably, this clause was some sort of amendment to their previous deal that would give more control to China, tipping the scales in their favor. This step for power could be related in some way with the absence of Hugo Chavez. But how does this relate to class? It seems that foreign dependence and interference is still a constant in Latin American countries. Just like in the 19th century, Venezuela seeks economic security with money from outside countries, giving those countries the power to take more from Venezuela, since they have the power of cash.